When I read the bullet point terms, it sounded like the fanfic authors would get a royalty of all the copies sold via amazon (although net, so who knows how little it may actually be, creative hollywood movie accounting??)

However the original IP owner is granted a license to all the fanfic authors ideas/concepts/characters in the work which I would guess means they can produce their own derivative books/movies/anything without paying the fanfic author a penny. The fanfic author only gets royalties for the ebook they wrote.

I could have misinterpreted it and there may be more to it. I imagine anyone who signs up will get a the full legal spiel sent to them to sign/return.

I never read a fanfic in my life and I probably never will, so this news about amazon doesn't really affect me in any way.
As for the amazon themselves I am not so sure they will have some big benefit from going along this way.
As for authors I guess it can be argued that the fanfic is good gateway to writing, but eventually readers want some originality. Or from another perspective, a fanfic writer can never be as successful as "just a writer".

If it's considered a work for hire, no they don't get royalties, just the one-time payment.

From the first post in this thread, quoting the Amazon press release:

Quote:

Amazon Publishing will pay royalties to both the rights holders of the Worlds and the author. The standard author’s royalty rate (for works of at least 10,000 words) will be 35% of net revenue. As with all titles from Amazon Publishing, Kindle Worlds will base net revenue off of sales price—rather than the lower, industry standard of wholesale price—and royalties will be paid monthly.